MASSMART SHAREHOLDERS APPROVE WALMART OFFER
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Massmart shareholders have voted in favour of Walmart’s offer to acquire 51% of Massmart at a cash price of R148.00 per share. At a special meeting held at Massmart’s offices in Johannesburg on 17 January 2011, 97.67% percent of shareholders present and entitled to vote, voted in favour of the deal, more than the 75% that was required.
There are however, important conditions that need to be fulfilled before the transaction can be implemented, including approvals from the South African Courts and the Competition Authorities.
The Competition Commission is expected to make its recommendation concerning the proposed acquisition to the Competition Tribunal during the course of this month. While the timing of the Tribunal hearing is largely dependent on the availability of a suitable date on the Tribunal’s roll, Massmart is hopeful that this can be achieved during February 2011.
Commenting on the shareholder approval Massmart CEO Grant Pattison, said: This is an important milestone and we now await the decision from the Competition Authorities”
Notes to Editors
Walmart’s offer for 51% of Massmart will ensure that the latter remains listed on the JSE, enabling shareholders to continue to participate in future growth. Subject to the fulfilment or waiver of the conditions precedent, the offer, as it applies to Massmart ordinary shareholders, is to be implemented by way of a scheme between Massmart and the holders of qualifying Massmart ordinary shares.
Once the scheme is operative, Massmart ordinary shareholders will be deemed to have disposed of their scheme shares, representing 51% of their total shareholding. They will retain the remaining 49% of their shareholding for as long as they choose to do so. The same dispensation is made to beneficiaries of the trusts.